The start of April sees a number of important changes that employers in the UK need to be aware of:

1st April 2021 – Increases to National Minimum Wage (employers should note the change to the age categories):

  • Age over 23: £8.91 (from £8.72 for over 25 year olds)
  • Age 21-22: £8.36 (from £8.20 for 21-24 year olds)
  • Age 18-20: £6.56 (from £6.45)
  • Age 16-17: £4.55 (from £4.62)
  • Apprentices: £4.30 (from £4.15)

4th April 2021 – Statutory rate increases:

  • Statutory sick pay: £96.35 per week (up from £95.85)
  • Statutory maternity, paternity, adoption, shared parental, and parental bereavement pay: £151.97 per week (up from £151.20)

6th April 2021 – Statutory limit changes:

  • Cap on a “week’s pay”: £544 (up from £538) (this is relevant, for example, to statutory redundancy pay calculations)
  • Cap on unfair dismissal basic award: £16,320 (from £16,140)
  • Cap on unfair dismissal compensatory award: £89,493 (from £88,519)

6th April 2021 – The extension of the IR35 off-payroll rules into the private sector, which was postponed in April 2020 due to the COVID-19 pandemic, is set to take effect.

  • The IR35 reforms require medium and large businesses to carry out status determinations to assess whether IR35 applies. Where they conclude that it does, and that but for an intermediary an individual contractor would be deemed an employee, the responsibility for making tax and NIC deductions through PAYE falls to the business. Please see the blog post IR35 changes – are you ready? for more details.